Where land acquired before September 1, 1990 prior to the enforcement date of the officially assessed individual land price has been designated as a planned land substitution after its acquisition, the method of calculating the standard market price at the

Where any land acquired before September 1, 1990, the enforcement date of the publicly announced individual land price, has been designated as the publicly announced land price after the acquisition thereof, the standard market price at the time of the acquisition of the publicly announced land price shall be calculated according to the formula of [the publicly announced land price as of January 1, 1990 x the previously announced land price x the previously announced land price as of January 1, 199 x the previously announced land price as of January 1, 199 x the publicly announced land price as of January 1, 199 x the land price as of January 1, 199

Articles 23 (see Articles 94 and 95 of the current Income Tax Act), 45 (1) (see Article 96 of the current Income Tax Act), the former Enforcement Decree of the Income Tax Act (see Article 96 of May 1, 1990), Article 16 (1) (see Article 77 (1)) of the former Enforcement Rule of the Income Tax Act (see Article 77 (1) of the current Income Tax Act)

[Plaintiff-Appellant] Plaintiff 1 and 1 other (Law Firm Domin, Attorneys Park Jae-young and 1 other, Counsel for plaintiff-appellant)

Ori-si (Attorney Lee Jae-soo, Counsel for the defendant-appellant)

Head of tax office

March 25, 1999

1. The part that exceeds KRW 8,070,950 among the disposition of imposition of capital gains tax of KRW 18,716,630 against the plaintiff as of January 16, 199, which the defendant issued against the plaintiff as of January 16, 199, shall be revoked.

2. The plaintiff's remaining claims are dismissed.

3. Five minutes of the lawsuit are assessed against the plaintiff and the remainder are assessed against the defendant.

The defendant's disposition of imposition of capital gains tax of KRW 18,716,630 against the plaintiff as of January 16, 1997 is revoked.

1. Details of the imposition;

The following facts are not disputed between the parties:

A. On December 16, 1989, the Plaintiff acquired 1/2 shares of 1,321 square meters among the miscellaneous land 1,321 square meters in Sejong-si, Mapo-si, 920, Mapo-si (hereinafter “previous land”). However, on May 8, 1990, the land readjustment project was designated as one-half shares of 1/2 shares (hereinafter “shared land”) among the 174 block block 9-Nomp and 306.4 square meters (hereinafter “instant land”) of the previous land as a planned land substitution for the previous land.

B. After that, on July 20, 1991, the Plaintiff acquired the remainder of 1/2 shares (hereinafter “non-point land”) of 174 block 174 block 174 block 306.4 square meters, and transferred the instant land to another person on December 20, 1995.

C. As the Plaintiff did not report the transfer income tax based on the actual market price following the transfer of the instant land on January 16, 197, the Defendant calculated the acquisition value and transfer value of the instant land to the Plaintiff according to the standard market price pursuant to Articles 23(4) and 1, 45, and Article 170(4) of the Enforcement Decree of the Income Tax Act, and imposed and notified the transfer income tax of KRW 34,028,650 calculated based on the standard market price, and found that there was an error in calculating the said tax amount by deeming that the instant land was acquired collectively on December 16, 1989, and that there was an error in calculating the said tax amount by deeming that the said land was acquired collectively on March 24, 1989, the said reduction decision of KRW 18,716,630 (hereinafter referred to as the “instant disposition”).

D. In rendering the instant disposition, the Defendant calculated the standard market price at the time of acquisition of the pertinent land (value per square meter) in accordance with the formula of [the publicly notified individual land price based on January 1, 1990 】 the price of the previous land at the time of its acquisition / the price of the land at the time of its acquisition / the price of individual land at the time of its announcement as of January 1, 1990 / the price of the land at the time of its announcement as of August 30, 199).

E. Meanwhile, the officially assessed individual land price as of January 1, 1990 is KRW 97,00, the officially assessed individual land price as of January 1, 1991 is KRW 221,00, and the officially assessed individual land price as of January 1, 1995 is KRW 292,00, and the officially assessed individual land price as of January 1, 1995 is KRW 292,00, and as of January 1, 1990, the publicly assessed individual land price as of January 1, 1990 as of August 30, 1990, the publicly assessed individual land price as of January 1, 1990 is KRW 47,300 (as of January 190, 191), and the land price as of the time of acquisition is KRW 4,340.

2. Whether the instant disposition is lawful

A. The parties' assertion

In this case, the defendant asserts that the disposition of this case is a legitimate disposition under the above disposition grounds and related Acts and subordinate statutes, and the plaintiff argues that the standard market price of this case is calculated at the time of acquisition of the previous land by comparing the land grade price and the land grade price of the previous land with the land price of this case, which is the basis for calculation of the standard market price at the time of the acquisition of the key land (Presidential Decree No. 12994 of May 1, 1990) in accordance with paragraph (3) of the Addenda to the Enforcement Decree of the Income Tax Act (Presidential Decree No. 12994 of May 1, 1990), which is the basis for calculation of the standard market price at the time of the acquisition of the key land. In this case, the standard market price at the time of the acquisition of the individual land price at the time of the public notice as of January 1, 1990 is the amount calculated by multiplying the land grade, which is the land price per unit, by the land grade at the time of the acquisition.

(b) Related statutes;

Attached Form 1 is as shown in attached Table 1.

(c) Markets:

(1) The key issue of the instant case is how to calculate the standard market price at the time of acquisition in case where the land acquired prior to September 1, 1990 (the enforcement date of individual land price) has been designated as a planned land substitution after its acquisition.

(2) As in this case, the standard market price of the land acquired before September 1, 1990, when the above Enforcement Decree of the Income Tax Act was enforced, shall be assessed according to the official formula (the officially assessed individual land price as of January 1, 1990 ¡¿ the standard market price of the taxation at the time of the acquisition x the standard market price of the taxation at the time of the acquisition x the standard market price of the individual land price as of January 1, 1990) pursuant to paragraph (3) of the Addenda of the above Enforcement Decree. The above formula is a method of estimatinging the standard market price of the land acquired before the above first public notice date as of January 1, 1990 as of the first public notice of the officially assessed individual land price as of August 30, 1990 under the Public Notice of Values and Appraisal of Lands, etc. of Lands, which can be applied at the time of acquisition and the above publicly notified individual land price at the time of

(3) First of all, Article 80(1)1 of the Enforcement Decree of the Local Tax Act provides that “The standard market price of land shall be .......................... (see Article 111(2) of the Local Tax Act; Article 80(3) of the Enforcement Decree of the Local Tax Act; Article 80(1)1 of the Enforcement Decree of the Local Tax Act provides that “The standard market price of land shall be ................... the standard market price of land shall be ................. the value of land shall be ................... the value of land shall be .................................] the tax base of land shall be ....................................................................................................................................................................................................

(4) Next, in general cases where there is no change in the area of land at the time of acquisition or at the time of transfer, as shown in the defendant, the calculation result is identical even if the above price of land, which is the land price per unit rather than the standard amount of the market price, is applied to the calculation method of the standard market price at the time of the above acquisition. However, in cases where the economic value of the land per unit is changed due to a change in the area of the land as well as the land area designated as a land substitution

(5) In addition, the standard market price as of January 1, 1990 and as of the date of the public notice of the publicly announced individual land price as of January 1, 1990, if both the taxation standard amount was calculated as the object of investigating the issues of the land which is the land to be reserved, even if the defendant applied the above formula, it can be deemed that the change in the area of the land to be reserved was considered in the calculation of the standard market price at the time of acquisition. However, on January 1, 1990, the standard market price as of January 1, 1990 is the price determined based on the size and circumstances of the previous land which does not reflect the fact of the designation as the reserved land. However, as of January 1, 1990, the land price as of January 1, 1990 as of the public notice of the publicly announced individual land

(6) Therefore, the standard market price at the time of the acquisition of key land shall be calculated according to the formula of [the previous officially assessed individual land price as of January 1, 1990 】 [the previous assessed individual land price as of January 1, 199 】 the previous assessed land price at the time of the acquisition (=the standard market price at the time of the acquisition)] or [the land price at issue as of January 1, 1990 】 the assessed land price at the time of the public notice of the officially assessed individual land price as of January 1, 1990 】 the land area at the time of the public notice of the officially assessed individual land price as of January 1, 1990]. Thus,

3. Justifiable tax amount.

Furthermore, if a legitimate amount of transfer income tax is calculated based on the calculation method of the standard market price at the time of the above acquisition, the transfer income tax is KRW 8,070,950, as shown in attached Form 2, and thus, the portion exceeding the above legitimate amount of tax in the disposition of this case should

4. Conclusion

Therefore, the portion exceeding KRW 8,070,950 out of the capital gains tax of this case imposed by the defendant shall be revoked as unlawful. Thus, the part seeking revocation of the above excess among the plaintiff's claims of this case shall be partly accepted, and the remaining claims shall be dismissed as they are without merit. It is so decided as per Disposition.

Judges Kim Jae-sik (Presiding Judge)